Number of businesses with unpaid taxes rises

Number of businesses with unpaid taxes rises

In both Cole County and in Missouri, the number of businesses not paying their taxes to the state have increased since January 2012, while the collective amounts they owe have shrunk.

Sixty-four Cole County businesses are being spotlighted by the Missouri Department of Revenue (DOR) for not paying taxes, owing a total of $461,099. That compares with 51 in January 2012 that owed a total of $610,752.

In Missouri, 3,349 businesses are on the list for owing a total of $31.6 million. That compares with 3,206 businesses that were on the list close to 1 1/2 years ago.

The businesses are on a "Who's Not Paying" list kept by the department and updated weekly. It shows Missouri businesses that have had their sales tax licenses revoked for failure to pay either sales tax or the income tax withholdings of their employees, or both.

In most of Jefferson City, the sales tax rate is 7.725, with 4.225 going to the state.

The list is not intended for businesses that are simply late on a payment and otherwise have a good record. It's for businesses that haven't paid even after collection efforts by DOR, agency spokesman Ted Farnen has said.

Until 2007, the department didn't single out businesses for non-payment. But a 2007 state law directed DOR to start maintaining a public list of revoked businesses. Revenue keeps the list on its website, and businesses that settle their debts with the state are removed from the list.

If DOR's Compliance and Investigation Bureau determines a business is operating without a state sales tax license, the business can be fined $500 for the first day and $100 each remaining day, with the penalty capped at $10,000, Farnen said.

To renew city or county business licenses each year, a business must show proof of having a state sales tax license. Cities or counties can shut down businesses that continue to operate without the proper licenses.

Jefferson City has said that the state notifies the city when it revokes state business licenses, and the city then takes action to revoke the city license. It sends police to deliver the notice to the business and to make sure it's not still open.

Revenue's "Who's Not Paying" list isn't a complete list, since delinquent businesses drop off the list after a year.

It's possible for some businesses to be on the list because of a tax debt from the previous owner, since some businesses sell their assets, but not liabilities, to a new owner.

Businesses are also on the list if they're closed, but still owe taxes. Many of the Cole County businesses on the list appear to no longer be in business.